What do the professionals say?
It's the start of a new year. This time of year is full of vision and passion of things that could be or the things that are beginning to take flight from your efforts before the start of the holiday season.
I thought I would ask some professionals around me what is one thing they would say for people who wish to press reset at the start of the year. If you read my writing regularly, you've probably had enough of me - so this is some refreshing reading ;)
I have purposely selected people who I believe are successful in their own right and I for one do not stop listening to others to give me fresh insight and input into my personal and professional life
"For my clients, my favourite tip is around Savings as that is what people find hardest to do and so my tip is that you should pay yourself first. What I mean by that is for most people once you have paid all your bills and lifestyle costs, by end of month there is rarely anything left so hard to get into a regular savings habit. So I always tell my clients to make themselves the first bill they pay, then pay all the other bills and lifestyle expenses and by end of the month if you have no money left you have at least already done your savings for the month. Better still is to set up a direct debit each month for the day after your pay comes in, transferring into another account which you don’t touch."
Dr Barbara O'Neill
Barbara is a Distinguished Professor at Rutgers University, New Jersey, USA. I got to interview Barbara for the Sort Your Money Out show podcast (season 1, episode 3) and it was such a fascinating interview. Check it out, she talks about her 1 million dollar mistake!
"Begin a savings challenge during 2018 and complete it. Here is a link to a page that describes six different types of savings challenges: http://articles.extension.org/pages/73884/monthly-investment-message:-july-2016 with different lengths and target amounts. Completing a savings challenge is empowering and will provide cash to pay off debt or fund a financial goal."
Tony is first and foremost a good friend of mine followed by being the Principal and SMSF Specialist Advisor at Godfrey Pembroke, Hyde Park. This tip is good for those who run their own business.
"I think there are loads of ideas and money tips that we all know and use one year or another. The end of year break for me is a great time to remind yourself of why you do what you do. To get the new year off to a great start we need to confirm our goals, recall our passion and re-link the purpose of our day to day to the success of the journey. For me it’s bringing the business outcomes back to my personal objectives. We make personal sacrifices to do what we do and we achieve a lot for other people. To get the year off to a great start make sure you take a break for yourself and the most important people around you."
Phil is an award winning financial adviser and I have now traveled the world with him (FinCon, Dallas!). He is a dad-preneur (who will feature in season 2 of the Sort Your Money Out show podcast. Phil's business is Thompson Financial Services, based out of Melbourne.
"Invest in yourself - Spend 1 day at the beginning of the year, remove yourself for the busyness of life to think about and write down what you're wanting to achieve in the next 12 months as well as what you want to achieve in the next 10 years. Some simple questions to get you started are:
1. Am I allowing my fears hold me back from living a life I've always wanted?
2. Is my 12 month goals helping me get closer to my 10 year goals?
3. What do I need to stop doing today to help me achieve these goals?"
I went to China with John last year. Then I left him there, true story. John is a property consultant and money coach who runs Solvere Wealth.
"If you receive a pay rise or bonus throughout 2018, bank the difference as you are already living off what you currently earn. eg if your nett income is $5k per month and your nett bonus received is $2K, this amount should be put away into your life buffer and not wasted away."
Kieran is an Accountant and Chief Financial Officer. His business is Powell Enterprises. Don't be deceived. He isn't your usual accountant! His tip is also what probably 90% of the population need to hear!
"Avoid borrowing money for wants and live within your means. The appearance of wealth is short lived but growing net wealth creates empires for generations."
Tony is a mortgage broker who runs Urban Broker. This tip is great for anyone considering a mortgage or maybe you've got an existing mortgage that needs a review!
"Focus on the VALUE you get from your loan and finance arrangements – not the interest rate. Getting a great interest rate is a small part of paying off your debts faster.
When you can understand HOW to payoff your debt quicker, through a few different strategies - this will ensure you are debt-free faster.
That is why It’s critical to have the right loan structure in place that will allow you to execute any number of debt reduction strategies, and at the same time, the right bank- or banks- that will support you to create further wealth.
That’s why now more than ever, you need a Broker to help you nail the winning combination of strategy and support."
Clem is a financial adviser who runs Recurrent Wealth and his tip is a great book end for all that we've read just now.
"I am sure you’ve gained some valuable thoughts and ideas from these tips, however without action you are just wasting your time on the internet – and that’s what cat videos are for. So since you’ve invested the time to read these tips, make sure you take the time to apply them. Write out what you have learned and consider how this applies to your situation. Next, picture how your life would look if you successfully apply these learnings to your situation. Looks good doesn’t it? Now, write the concrete actions you will take to apply and embed this improvement in your life. What comes next? Bust a move!"